U.S. Stocks Close Down, Investors Spooked by Greece's Bond Payment Deadline

Stocks ended lower Monday after a deal to prevent Greece from defaulting on its upcoming bond payment remained elusive.

Investors have been waiting for an agreement between Greece and its creditors for weeks now. However, over the weekend the European Union, International Monetary Fund and European Central Bank asked Greece to perform key austerity measures and financial reforms before receiving a 145 bln euro aid package.

Unfortunately, Monday came and went without an agreement by Greece's leaders to implement said reforms and therefore secure the much needed financial aid. Without this aid, Greece is at risk of defaulting on its March 20 bond payment. If a default does occur, traders have cautioned that there will be dire consequences on the global financial system.

Stateside, there was no economic data on yesterday's calendar. As a result, concerns of a potential Greek default remained at the center of traders attention.

In company news, SureWest Communications (SURW) was sharply higher after accepting a buyout offer from Consolidated Communications Holdings Inc. (CNSL). The $23.00-per-share cash and stock offer represents a 47% premium over SURW's closing prices on Friday.

Shares of Medco Health Solutions Inc. (MHS) slipped after Reuters reported antitrust regulators were considering whether they have enough evidence to block its merger with Express Scripts Inc. (ESRX). ESRX was also down on the news.

Gold futures declined Monday as a rising greenback made the commodity more expensive for holders of international currency. Gold for April delivery declined $15.40, or 0.9%, to settle at $1,724.90 an ounce on the Comex division of the New York Mercantile Exchange. It fell by as much as $26.30 to touch a low of $1,714 an ounce earlier. Oil ended down 1% at $96.91.

Here's where markets stood at end-of-day in the U.S.:

Dow Jones Industrial Average down 17.10 (-0.13%) to 12,845.13

S&P 500 down 0.57 (-0.04%) to 1,344.33

NASDAQ Composite down 3.67 (-0.13%) to 2,901.99

GLOBAL SENTIMENT

Nikkei was up 1.10%.

Hang Seng was down 0.23%.

Shanghai Composite up 0.03%.

FTSE-100 down 0.15%.

UPSIDE MOVERS

(+) CYBI, Will pay $19.5 million to settle product liability suit.

(+) TIVO, Weekend Barron's article cites 'compelling' second act.

(+) DNDN, US health Regulators publish critical review of rival Amgen's cancer drug.

(+) BRO, Q4 profit beats estimates.

DOWNSIDE MOVERS

(-) USG, narrows net loss but still misses Street expectations.

(-) ZGNX, (-8.1%) Selling up to $75 million in new stock.